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Continued from page 3

AA: Last, is it possible to calculate, on average, what timepieces are worth when selling them versus their original retail value? How would you explain this concept in a nutshell to consumers?

HP: The quick answer is “No.” However, the general rule is that three things can narrow the gap between retail and aftermarket:

(i) Strength of the Brand: If the brand is strong, that means there is a high demand, and the brand followers don’t care as much that the watch is aftermarket. Therefore, the watch will command a price more similar to retail.

(ii) Men’s vs Women’s: Women’s watches tend to depreciate far quicker than men’s. There are lots of theories as to why but the one we subscribe to is that there are very few husbands who are willing to risk the wrath of a disappointed wife by buying her a preowned watch. Therefore, the aftermarket prices for women’s watches are weak.

(iii) The Original Release Date: If the watch is a relatively new release, it has depreciated less and is therefore more likely to fetch a price closer to retail.

Take a 2010 Rolex Daytona model 116520 we recently bought for $8,750. This same watch can be purchased brand new for $11,000. The reason we paid 80% of retail was that the Rolex brand is one of the strongest out there, plus the watch was only 2 years old.

Alternatively, we recently purchased a Van Cleef and Arpels Secret Miroir des Eaux for $8,250. Originally, this watch retailed brand new at the Van Cleef boutique for $63,000. Because it was a women’s brand and an older watch, there was a huge gap between the aftermarket and retail price. Again, “a watch is worth what someone is willing to pay”, and unfortunately there just aren't a lot of women who want a gently used Van Cleef watch.